Correlation Between Torq Resources and Kore Mining

Can any of the company-specific risk be diversified away by investing in both Torq Resources and Kore Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Torq Resources and Kore Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Torq Resources and Kore Mining, you can compare the effects of market volatilities on Torq Resources and Kore Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Torq Resources with a short position of Kore Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Torq Resources and Kore Mining.

Diversification Opportunities for Torq Resources and Kore Mining

0.22

Correlation Coefficient

Torq Resources  Kore Mining

Modest diversification

The 3 months correlation between Torq and Kore is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Torq Resources and Kore Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kore Mining and Torq Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Torq Resources are associated (or correlated) with Kore Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kore Mining has no effect on the direction of Torq Resources i.e., Torq Resources and Kore Mining go up and down completely randomly.

Pair Corralation between Torq Resources and Kore Mining

If you would invest  4.00  in Kore Mining on September 5, 2024 and sell it today you would lose (0.50) from holding Kore Mining or give up 12.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.65%
Values	Daily Returns

Torq Resources  vs.  Kore Mining

Torq Resources

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Torq Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Torq Resources showed solid returns over the last few months and may actually be approaching a breakup point.

Kore Mining

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kore Mining are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Kore Mining showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Torq Resources and Kore Mining

The main advantage of trading using opposite Torq Resources and Kore Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Torq Resources position performs unexpectedly, Kore Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kore Mining will offset losses from the drop in Kore Mining's long position.

The idea behind Torq Resources and Kore Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.